02:20 PM EDT, 05/23/2024 (MT Newswires) -- Delta Resources ( DTARF ) on Thursday said it reached an option agreement with Golden Share Resources to acquire exclusive rights for a 100% interest in the Band-Ore property in northwestern Ontario.

The terms of the agreement are $100,000 cash on signing, and $1.9 million in a combination of cash and shares over five years.

The property is two kilometers west of the Delta-1 property which is 50 kilometers west of Thunder Bay, Ontario. The property hosts two historic high-grade gold resources that are not National Instrument 43-101 compliant.

Golden Share will retain a 2% Net Smelter Return Royalty (NSR). Delta will have the option to buyback half of the NSR at anytime for $3 million and will have a right of first refusal on the second 1% NSR. Golden Share is also entitled to certain bonuses depending on the size of the resource estimate. There are no work commitments on the property.

"This is an important acquisition for Delta, adding another 21 square kilometers of very prospective ground to our Delta-1 property but also adding to Delta's growing gold inventory in the area," chief executive Andre Tessier said.

Delta Resources ( DTARF ) shares were last seen unchanged at $0.14 on the TSX Venture Exchange.